Shares in Omega Diagnostics, which have surged this year on the back of the company's involvement in coronavirus testing, got a further boost this morning following confirmation that its Food Detective test has received regulatory approval in China.

The Alva-headquartered firm said the National Medical Products Administration (NMPA), the successor to the China Food and Drug Administration, has approved Food Detective for self-testing in that country. The test detects intolerance to a range of foods.

"I am delighted to receive self-test approval in China which was a key commercial objective for this year," Omega chief executive Colin King said. "This is another excellent reward for all the hard work put in by both our and our partner's teams in what has remained challenging times around the world."

Shares in Omega were trading 2 per cent higher by mid-morning on Tuesday.

READ MORE: Omega adds staff at its Alva HQ as Covid test production gears up

Edinburgh furnishing company transfers to employee ownership

The Herald:

Scotland's employee-owned businesses are closing in on the £1 billion turnover mark as interior design company Tangram becomes the latest to transfer to EO status.

The company, which operates from a showroom and office in Edinburgh city centre, specialises in the premium end of the market and works with clients, designers and architects to specify and supply contemporary furniture, lighting, blinds and rugs. Its wide variety of projects includes work for both private individuals and commercial sites such as restaurants, offices and museums. 

Tangram was founded in the early 1990s. Julian Darwell-Stone joined the firm in 1998, becoming sole owner and managing director in 2003.

Julian wanted to plan for his eventual exit by considering the succession options in good time, therefore allowing for a smooth transition. Thoiugh other options were considered, employee ownership was suggested by Scottish Enterprise, who put him in touch with Co-operative Development Scotland (CDS).

Mr Darwell-Stone said: “When I started to think about the future of the business and my eventual retirement, I knew I didn’t want to simply shut up shop and end something I’ve worked extremely hard to build. I also knew I had a long-serving and incredibly loyal team and I wanted the business to continue in its current form for them.

"I didn’t want to sell to a third party and see the business absorbed into another organisation with different values or a strategy that might not match ours.

“We have developed a very successful business together and have created a strong team ethic, so it was important to me to give the company, the jobs and the brand the best chance of continued independent existence following my exit. Employee ownership is the perfect fit for us.”

Within Scotland, there are now approximately 110 employee-owned companies with roughly 7,500 employee-owners, generating a combined turnover of circa £950 million.

READ MORE: ‘Surge of interest’ in employee ownership as SMEs take stock

Primark owner posts plunge in profits

The Herald:

Associated British Foods has reported a 40% fall in full-year earnings, with the Covid-19 hit to its Primark clothing business outweighing increases at its sugar, grocery, agriculture and ingredients divisions.

The group’s adjusted earnings per share were 81.1p for the year to September 12, down from 137.5p reported a year earlier. ABF said it would not pay a final dividend.

Primark’s profit plunged to £362m pounds from £969m, reflecting the closure of its stores across Europe during a first wave of coronavirus lockdowns and the impact of the virus on customer demand.

Trading was strong after the stores reopened, but the group warned yesterday that a second wave of lockdowns will dent sales by £375m. Primark does not have an online business.

READ MORE: Primark owner to take £375m sales hit from latest Covid closures

Sign up

You can now have the bulletin and the top business news stories sent direct to your email inbox twice-daily for free. Tick Business Bulletin AM edition and Business Bulletin PM edition, and Business Week for the weekly round-up on Sunday, in the newsletters section here to sign up:

https://www.heraldscotland.com/my/account/register/